BestAdvice fires the questions at Brian Rubins, executive chairman at Alternative Bridging Corporation
BestAdvice (BA): You’ve been operating for 30 years now. Can you briefly outline how the business has changed over that time?
Brian Rubins (BR): When we first started lending back in 1992, we provided bridging loans tailor-made to suit the occasional need; for example, when a bank could not deliver on time. Today, we still do that but have hugely diversified as well. We now also lend for property development and provide overdrafts and term loans. We are now an alternative source of property finance for both regulated and non-regulated business.
BA: What was the toughest challenge during that period?
BR: Over the past 30 years, undoubtedly the most challenging period was the financial crash of 2008. No one knew what would happen, so it was certainly a case of ‘when times get tough, the tough get going’. We kept our cool, exercised caution and carried on lending. In fact, we ended up expanding the bridging company!
BA: How has the short-term lending market changed over the past 30 years?
BR: In a word? Scale. When we first started out, there were very few lenders operating, and they all kept to their very distinct niches. Equally, there were relatively few brokers out there who specialised in non-mortgage related property finance. Today, the volume of loans and the number of brokers and lenders out there bears no relation to how things were 30 years ago.
BA: What has been the single most important innovation/change to the market over that period?
BR: I would say funding. Nowadays, we have support from the challenger banks who have provided credit lines to us, allowing us to commit to loans confident in the knowledge we can fulfil our obligations. There was nothing like that available when we first started operating in the market.
BA: What would you attribute the business’ longevity to?
BR: Simply put, I would attribute it to us listening to brokers’ and borrowers’ demands and fulfilling their requirements. Plus, going that extra mile to do so, providing certainty of delivery.
BA: What are your plans for the future?
BR: Obviously to continue doing what we’re doing. To ensure this, we will continue to recruit the best people and to provide excellent service. This will help us be able to support our brokers as they have supported us.
BA: Where do you see opportunities for growth?
BR: We relatively recently introduced the Alternative Overdraft and from a small start it is growing exponentially. It offers a truly flexible loan facility available for two years plus. It provides multiple drawdowns on demand which can be repaid or reduced and redrawn again and again.
In this way, we will continue to be innovative with new products to fill important gaps in the market.
BA: Are there too many lenders in the market?
BR: No, competition is good for everyone. It offers brokers and borrowers a wider choice of product and keeps lenders on their toes.
BA: We are currently facing a variety of tough economic conditions. How do you see this affecting the markets that you operate in?
BR: We survived 2008, Brexit and Covid, and all of them have made us wiser. We will use this experience to face the future. It will separate the men from the boys and possibly some of our peers will be a little more cautious, which will be good for everyone.
BA: Finally, in honour of Alternative’s 30th anniversary, you’re granted one wish for the market. What would it be?
BR: I would wish for the market to be more transparent, where our peers are not able make extravagant promises which they cannot fulfil, which is bad for the industry.
